OREANDA-NEWS. May 3, 2012. BANK URALSIB (OJSC “URALSIB” or the Bank) (RTS: USBN) reports on IQ2012 financial results under Russian Accounting Standards (RAS)1.

The Bank’s net income at the 1-st quarter of 2012 reached 834 mln rubles. During the reporting period core banking income reached 5.4 bln rubles.

Net operating income reached 5.7 bln rubles, thus having reduced by 7.5% y-o-y 2011.

Net interest income amounted to 3.8 bln rubles and increased by 6.6% in IQ2012 vs IQ2011. Interest income grew by 16.1% y-o-y due to credit expansion both in the corporate and retail sectors. Interest expenses rose by 27.1% y-o-y mainly due to higher interest rates on time deposits.

Net fee and commission income reached 1.6 bln rubles, having increased by 2.7% in IQ2012 vs IQ2011.

Net gains from operations on financial markets amounted to 436 mln rubles in IQ2012, owing to 205 mln rubles gains from trading operations with precious metals. During the reporting period net gains from operations with securities amounted to 134 mln rubles.

In IQ2012 allowances for loan losses amounted to 292 mln rubles vs 185 mln rubles gains from allowances recovery in IQ2011.

The share of core banking income in total operating income (before allowances for loan losses) increased and amounted to 90.0% in IQ2012, and the share of volatile income in total operating income amounted to 7.3%.

The Bank’s assets as of 01.04.2012 amounted to 410.1 bln rubles.

The Bank’s loan portfolio amounted 254.9 bln rubles and reduced insignificantly by 1.3% y-t-d. In particular, loans to corporate clients decreased to 174.1 bln rubles (by 3.0% y-t-d), loans to individuals increased to 80.8 bln rubles (by 2.4% y-t-d). In the reporting period the quality of the loan portfolio remained stable. The share of NPLs in the loan portfolio amounted to 7.3% as of 01.04.2012 vs 7.5% at the beginning of the year. The Bank retains sufficient provisions coverage of overdue loans: loan-loss provisions amounted to 25.2 bln rubles as of 01.04.2012, 1.4 times exceeding the volume of overdue loans.

Customer accounts as of 01.04.2012 amounted to 274.7 bln rubles, having decreased by 2.3% y-t-d. The volume of corporate accounts reduced to 135.4 bln rubles (by 6.6% y-t-d), the volume of individual accounts increased to 139.2 bln rubles (by 2.2% y-t-d).

Loan portfolio/customer accounts ratio as of 01.04.2012 grew to 92.8% vs 91.9% as of 01.01.2012.

Total regulatory capital (under CBR methodology) as of 01.04.2012 amounted to 50.3 bln rubles. The capital adequacy ratio (N1) exceeded the minimum required level and reached 11.47% as of 01.04.2012.

Note:1 Numbers are calculated in accordance with URALSIB’s internal methodology